A House Staffer affixes a sign that says “Tax Cuts and Jobs Act” ahead of a gathering of House Republicans making statements to the media following a vote on House Resolution 1, Thursday, Nov. 16, 2017, on Capitol Hill in Washington. (AP Photo/Jacquelyn Martin)

At the end of this year, significant portions of the Tax Cuts and Jobs Act (TCJA), which was signed into law in December of 2017, officially expires. That means that – absent congressional action – taxes for Iowa families, farmers, and businesses will increase. As a member of the House Ways and Means Committee, I will be working closely with President Trump, Chairman Jason Smith, and my colleagues to reauthorize the Tax Cuts and Jobs Act, build upon the major successes of this law, and prevent massive tax hikes on Iowans and Americans everywhere.

The consequences of allowing the TCJA to expire are severe. The average U.S. taxpayer would face a 22% increase in taxes and American families making the median income of about $80,000 would see almost a $1,700 tax hike. 40 million families would also have the Child Tax Credit slashed in half, 91% of taxpayers would see their standard deduction cut in half, 26 million small businesses would face a top tax rate of 43.4%, and two million family farms would witness their death tax exemption sliced in half. From a 30,000-foot view, investment would slow, economic development would evaporate, and our economy would be crushed with trillions in new taxes.

To deliver relief from inflation, one of our top priorities will be maintaining the income tax cuts and the doubled standard deduction for our families. In 2017, TCJA increased the standard deduction from $6,500 to $12,000 for individual filers, from $13,000 to $24,000 for joint returns, and from $9,550 to $18,000 for heads of household. Indexed for inflation, the deduction now stands at $15,000 for single filers, $29,200 for joint filers, and $21,900 for heads of household. By protecting the increased standard deduction, we let Iowans keep more of their hard-earned money and allow our families to invest and save as they see fit.

Another provision that must be retained is the 20% tax cut on qualified business income for our small businesses. Prior to the enactment of TCJA, Iowa small businesses were paying exorbitant amounts in taxes – draining limited capital that could be deployed to hire new employees, make investments, and upgrade their technology. With the creation of the 20% tax cut for small businesses, entrepreneurs and employers have been able to increase wages for their workers, keep their doors open, and give back to our local communities through donations and other charitable events. Based on my conversations with business owners and my travels around the district on my 36 County Tour, this reform to our tax code has been very successful and meaningful. In fact, the National Federation of Independent Business found that nine out of ten main street businesses claimed the deduction and, from 2018 to 2021 alone, an additional 10.8 million tax returns included the deduction.

To spur investment and economic growth in our rural communities, we also need to make immediate expensing – also known as 100% bonus depreciation – permanent. This tax provision is a game changer for our farmers, biofuels producers, manufacturers, and businesses who need certainty that they will see tax relief as a result of expanding their operations, making investments, and pursuing research-and-development opportunities. According to the nonpartisan Tax Foundation, making 100% bonus depreciation permanent would create 100,000 new jobs, boost wages, and grow our economy. 100% bonus depreciation permanency would also help small businesses offset the cost of major investments and instead hire new employees and expand their operations domestically. China offers generous support to its businesses and job creators, and it is absolutely necessary that we help our business community compete with China’s unfair trade practices and blatant subsidization of state industries.

Finally, there are a few tax policies that I am working on for the benefit of our families, farmers, and small businesses. One of the most egregious tax provisions levied by the federal government is the death tax. This unfair tax targets our family farms and family-owned businesses – threatening to close them for good if they cannot cough up massive sums of money to pay an enormous tax bill after the death of a loved one. TCJA doubled the death tax exemption, which was an important step to providing relief. Now it’s time to finish the job and end the tax once and for all. That’s why I introduced legislation to permanently repeal the death tax and end this attack on our main streets, family traditions, and rural communities. At a minimum, our tax package needs to retain the doubled exemption, and at best, it should include the total elimination of the death tax in our federal tax code.

Separately, I’ve been very involved in working with my colleagues to advance paid family and medical leave (PFML) policies. My bill – the Paid Family and Medical Leave Tax Credit Extension and Enhancement Act – would help small businesses offer PFML to their employees. This legislation specifically extends and reforms the 45S tax credit – which was a two-year tax credit authorized by TCJA and later extended by Congress through 2025 – for employers that voluntarily offer up to 12 weeks of PFML. PFML ensures that workers can take needed paid time off to spend with their families when a new baby arrives or, in the event of a medical emergency, allows employees to take the time that they need to heal and recover without missing a paycheck. Reauthorizing this tax credit enables business owners to work directly with their employees to provide critical support and other tools.

Extending and building upon TCJA is my top priority as a member of the House Ways and Means Committee, and I will work diligently to protect these tax cuts for our families, farmers, and businesses. Republicans will honor our commitment to American taxpayers by delivering tax relief, rebuilding our economy, and lowering costs for our families.

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Randy Feenstra, a Republican from Hull, represents Iowa’s Fourth District in the U.S. House.